The inquiry ruled that the trust has become pre-occupied with cost-cutting measures and poor standards at the hospital could have caused between 400 and 1,200 more deaths while putting scores of other patients at risk between 2005 and 2008.

Mid Staffordshire NHS Foundation Trust revealed it could not accurately calculate total cost of compensation as the claims were still being settled and others may yet be made, but it is believed that dozens of families will receive pay-outs ranging from £1,000 to about £27,500 in what is considered as being Britain's largest ever group claim against a hospital.

A public inquiry into the failings of the trust will be carried out in November after it emerged that is still falling short on 11 key standards.